Overview: Percentage of total opportunities owned by the rep that progressed from the stage indicated to the next stage in the funnel, or to Closed Won.
Why it’s important: For an AE whose win rate is higher or lower than the rest of the team, opportunity conversion rate helps to identify where in the sales funnel that rep is outperforming or underperforming to drive that result. If win rate is low, and opportunity conversion rate pinpoints the point at which the majority of opportunities are being Closed Lost, it might suggest a coaching opportunity related to the specific tasks to be done in that stage. Similarly, for a team of reps, identifying a stage where that team consistently struggles might suggest a sales enablement approach to train the team on skills related to that part of the sales process.
Looking instead at the conversion rates from each stage to Closed Won gives sales managers and sales ops a better understanding of their overall funnel and how to understand probability-weighted pipeline to inform decisions around forecasting and weighted pipeline coverage of quota.
Who it’s useful for: AEs and their managers, and sales operations.
Definition: When looking at conversion rate to “Next”, opportunity conversion rate tells us, for all opportunities that exited a stage during a given time period, what percent of those opportunities moved forward to a more advanced stage versus being Closed Lost. When looking at conversion rate to “Won”, opportunity conversion rate tells us, for all opportunities that closed during a given timeframe, what percent of the opportunities that reached each stage were eventually Closed Won as opposed to Closed Lost.
What data is used?: Opportunity data from Salesforce, including the opportunity owner and the opportunity stage history. Where different Opportunity Record Types map to different stages, that data is also used to limit the selection of stages to a single record type.
Alerting: Alerting on this card is based on the conversion rate from each stage to the next during the trailing 90 days. Personal alerts will compare conversion rate from each stage to the next against the average conversion rate during the prior six 90-day periods. Peer alerts will compare against peers during the trailing 90 days. Alerting on this card can be for any stage, and the alert will specify at which stage the AE is overperforming or underperforming relative to peers or to past performance.
Back of Card: The data on the back of this card shows, for each opportunity included in the configuration chosen (e.g., “Any to Next” or “Stage 4 to Closed Won”), the name of the Opportunity, the initial stage and end stage during the selected time period, the opportunity Type, and the current stage of the opportunity.
How to use it: For a rep struggling with Win Rate, this card will show where in the sales funnel that rep is losing a disproportionate percentage of opportunities versus the rest of the team. That information can allow for a targeted coaching conversation focused on the actions that occur during that stage.